November 11, 2018

5 Ways Millennials Can Save Money

As a millennial, you may often wonder about savings; why should you put a portion of your income into investments like mutual funds or shares when you can easily buy those new Gucci shoes, an iPhone X or a brand new Rolex? As a matter of fact, popular belief amongst millennials, is that investments are for the older generation. You know what the truth is? Investments are for everyone and being financially secure is the gateway to a comfortable and jolly good future.

So you discovered how much financial power you have and the various ways you could channel your income into future profits. Now it is important to have a rethink about your spending habits and consider saving more. Investing isn’t always easy, especially for the younger folks, as a large number of this group, find it difficult to set aside part of their salary for investing purposes. Maybe you don’t understand how to invest, why you should invest or maybe the available options are just not appealing. Rather, you find millennials breaking the bank for the latest gadgets, trendy clothing, and even date nights.

The question is: is investing really that important for you as a millennial? The answer is an obvious YES because this is one of the keys to financial freedom and stability in the future. It’s not as difficult as you may think, as all that is required is being a wiser with your spending and saving more funds.

Looking for ways to grow your money as a millennial? Let’s begin with some tips to guide you on how to save:

  • Track what you spend: Just like you track your calories or track your daily steps, track your spending habits. You may never really know just how much you are spending until you create a budget for activities and determine to stick to it. Start today, and write down your expenses; use lists, spreadsheets or even a financial saving app. Try this and watch your savings grow.
  • Focus on your fixed costs: Understanding the necessities that you spend money on monthly is important when trying to save money. Fixed costs are usually things like rent, transportation, food etc. Becoming aware of this will help you not to exceed the limit you set for your monthly expenditure if you are able to discipline yourself and see the long-term benefits of a new lifestyle.
  • Entertain yourself at home: Going on a date at the end of a long week could be the perfect stress reliever; but does it relieve your account balance? One way to reduce your spending would simply be to limit how often you go out. Thinking of fun things to do at the weekend that won’t dent your account? Get creative at home -find a recipe to cook for your boyfriend, host games night or learn a new skill online, as opposed to spending all your time outdoors which can be expensive. Cutting back on spending on the miscellaneous just might be the missing key to seeing your investments grow.
  • Shop sales and with discount cards: Everything from furniture and computers, to clothing is marked down, you just have to check discount websites, maximise online giveaways and clearance sales. Have fun with it and shop smart.
  • Be driven by your goals: As you get older, you get closer to your long or short term goals which could be either owning a house, purchasing your dream car, planning your wedding or that long awaited vacation…its ok to gratify yourself once you have earned it. Your ability to save, sets you on a path to achieving these goals. As a millennial, focus on goals that motivate you to save.

You have so much potential in your life to leverage on but this can only happen if you know what to invest in. It is important to speak with financial experts such as FBNQuest Asset Management, to help you through this journey, provide advice on different solutions you can invest in and explain the short and long term benefits of becoming smarter financially.

Contact fbnquest.com/assetmanagement for more information on how you can start investing today. Remember, it is not about how much you make, but about making your money work for you & watching it grow.